Canadian bank regulators are jumping into action to contain economic risk. The Office of the Superintendent of Financial Institutions (OSFI) made emergency changes last week in response to COVID-19. These changes include dropping the update to the mortgage stress test, lowering domestic stability buffers, and asking banks to halt share buybacks and dividend hikes. Mortgage […]
Canadian household debt is cheap to carry, but that could change soon. Bank of Canada (BoC) data shows the interest rates for households is climbing this month. Rates are still lower than last year, but they’re back to climbing higher. Effective Interest Rate The effective interest rate for households is a weighted index of what […]
Savings? Canadian households don’t want to hear about your exotic German habits. Statistics Canada (Stat Can) numbers show the unadjusted household savings rate had an abysmal Q1 in 2019. The rate of household savings made the weakest Q1 print in over 59 years of data. Combine that with higher debt loads, and even a rate […]
Canadians swimming in debt can rejoice – they’re getting the benefits of a cut without the rate cut. Bank of Canada (BoC) numbers show the effective household borrowing rate dropped to a multi-month low the week of June 14. The typical household is still paying more than last year, but rates are down 23 bps […]
Fresh off an epic credit binge, households in Canada are starting to shy away from more debt. Bank of Canada (BOC) numbers show household debt levels barely moved in February. Not only did debt barely move from the month before, but the annual pace of growth fell to levels not seen since 1983. Canadian Households […]
Borrowing rates are sliding before the traditional busy season for Canadian real estate. Bank of Canada (BoC) numbers show the effective borrowing rate peaked in early March. Shortly after printing the highest number since the Great Recession, the rate dropped. The minor drop made headlines, but only really impacts people shopping in that window. The […]
Canadian household finances took another hit last year. Statistics Canada (StatCan) numbers show the debt servicing ratio (DSR) is at a multi-year high as of Q4 2018. The amount of income spent maintaining debt is now at a level not seen since 2007. The volume of debt has effectively wiped out the household benefit of […]
Canadian real estate buyers aren’t the only ones being tight with the loans. Bank of Canada (BoC) numbers show household debt growth has fallen to the lowest level in more than 30 years. The decline in growth is so low, it’s something Canada hasn’t seen outside of a recession. Canadians Owe Over $2.15 Trillion In […]
Canadians still have access to cheap credit, but it’s disappearing fast. Bank of Canada (BoC) numbers show the cost of borrowing is rapidly increasing as of last week. Over the past two years, a typical household loan has seen servicing costs rise by nearly a third. Effective Borrowing Rates The effective borrowing rate is the […]
Canada’s national housing agency sees a much smaller mortgage in your future. Canada Mortgage and Housing Corporation (CMHC) forecast numbers included projections for mortgage rates. The high projection for the rates almost add a fifth to the cost of servicing a mortgage. If rates hit these projections, buyers would lose up to 11% of their […]
